That's right: They garnered $7 of every $10
invested in funds in 2015.

That statistic is the most frightening number in the world
right now for actively managed funds, which are run by
stock pickers and bond managers.

"The asset management industry is now in an era of disruption and
consolidation, similar to what Wall Street firms underwent in the
late 1970s and '80s," said Fred R. Bleakley, director of the US
Institute, a forum for asset-management bosses.

Assets under management in passive funds have surged 20% in the
past five years, thanks to the demand for exchange-traded funds,
according to the
Casey Quirk survey.

But for money managers that attempt to beat the market, it's a
different story. Of the firms with more than $10 billion in
assets under management, 44% saw money flow out last year, the
survey found. That compares to 40% in 2014 and 37% in 2013.
Traditional active managers as a group saw outflows last year.

This shift has been driven by retail investors, according
to Jeffrey Levi, principal
at Casey Quirkby Deloitte.

"Individual investors — increasingly skeptical of active
management, fee-sensitive, and outcome-oriented — are the drivers
of industry growth," he said.

These investors are important, as they're
expected to account for 90% of all new money invested
in the $69 trillion global asset-management
industry through 2020, versus only 10% from
institutions, according to the survey.

Casey Quirk by Deloitte
Analysis

The intense competition for these individual investors is
translating into fee pressure. Money managers have
seen an 8% drop in fee
rates between 2012 and 2014, and, according to
the survey, that trend continued last
year.

Deloitte

"Many traditional active managers must adapt because their
business models are outdated in a world in which individual
investors and their need for advice are the revenue generators,"
said Levi. "Fees are under increasing scrutiny, and regulatory
pressures are on the rise. This shifting marketplace will in turn
drive greater convergence in the industry across wealth
management, asset management, insurance, and financial
technology."